Documents: Beef plant owes millions

FFLIVESTOCK

Northern Beef Packers owes money to 277 unsecured creditors, including more than $1 million to a prime investor, according to documents filed in federal bankruptcy court.

Two new mechanics liens, both modest, have also been filed against the beef processing plant south of Aberdeen.

According to bankruptcy court documents, Northern Beef Packers has estimated assets of more than $50 million, but less than $100 million, and estimated liabilities of between $10 million and $50 million.

The largest unsecured creditor is Oshik Song, general partner, to whom $1.04 million is owed, according to bankruptcy paperwork.

The plant also owes $1.03 million to Hanul Law of Santa Ana, Calif.; $903,028 to the U.S. Treasury for payroll taxes and $182,263 to the City of Aberdeen for utility bills, according to the court documents.

Unsecured creditors don't have any security or collateral - anything to foreclose on or repossess. So they have to, in essence, line up and hope they will eventually be paid.

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According to a voluntary petition of bankruptcy filed by the plant, it "estimated that after any exempt property is excluded and administrative expenses are paid, there will be no funds available for distribution to unsecured creditors."